Using a Final Fantasy motif as a showcase, Square Enix has revealed at E3 its Luminous Engine, which it describes as being for "next generation quality games".

The next generation of consoles may not be at this show, but their graphics certainly are.

Everything you see in this video - dubbed Agni's Philosophy - and screens is supposedly running in "real-time". Or, to quote Square, this is a "FINAL FANTASY REALTIME TECH DEMO". Given this is an engine advertisement, don't expect launch games to look just like this, but still. A glimpse at the potential of future consoles is better than no glimpse at anything from the future from this show, right?

UPDATE
- Evan got to see the thing in action. Here's his impressions
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Here's the official press from Square Enix, with screens below:

AGNI'S PHILOSOPHY (herein referred to as the demo video) was produced with LUMINOUS STUDIO, Square Enix's game production environment (engine) for creating next generation quality games. The LUMINOUS STUDIO engine is currently in development internally at Square Enix.

Thanks to the LUMINOUS STUDIO engine, the demo video can depict high quality "real time computer graphics" (*1) at the same level as "pre-rendered computer graphics" (*2). The fine details of the characters, who express life-like humanity, are showcased through their rich facial expressions, subtleties of their pupils and hair, and their brilliantly flowing garments. The characters, along with the vibrant monsters, transport the viewer into the world created by the LUMINOUS STUDIO engine.

Furthermore, the demo video production was created through the lens of the FINAL FANTASY series, where ancient magic and advanced science coexist in a near-futuristic world. The video depicts a life-changing encounter for our heroine, the magic-wielding protagonist Agni.